I wish to share my views on the debate between minimum wage, adopted in most countries, and the progressive wage system, favored by the govt in Singapore.
According to the International Labour Organisation, more than 170 countries in the world have a minimum wage, or 92 per cent of its 186 member states.
If the progressive wage system is better, why do other countries not adopt it?
The progressive wage system was introduced in Singapore in 2012. It covers the cleaning, security and landscaping industries.
While it has made some progress, it does not help much to raise the overall level of wages and the inequality in wages.
My view is that it will take a long time for the progressive wage system to have an impact. We have a habit of finding convoluted approaches to solve our problems. Many people are confused with these approaches.
What's the problem with implementing a minimum wage. There is a fear that it can cause small employers to reduce the workers that they employ.
Why not, for a start, implement a minimum wage in the public sector and for large companies? We can exclude small businesses initially.
The public sector should set an example and pay an adequate wage to all its workers. It is egregious for the National Library Board to pay a wage of $5.50 an hour for its part time workers.
The same observation can be made about the wages for workers in Changi Airport. If the work is outsourced to sub-contractors by the public sector or the large companies, the minimum wage should also apply to the contracted workers.
It is better for the public sector to stop the practice of outsourcing of their work to reduce the cost of labor.
We can find a way to get small businesses to implement the minimum wage. The govt can give the a subsidy to cover the wages of a limited number of workers in each small business.
The proponents of the progressive wage system pointed out that the wages will be higher for workers with more skills.
We can leave it to the employer to pay higher wages to better skilled workers. There is no need to give this excuse to avoid the minimum wage.
The high inequality in Singapore has to be dealt with. We have to implement a more effective system to raise the wages of low income workers. Most countries decided that the minimum wage system is the way to go. They are not stupid.
Tan Kin Lian
According to the International Labour Organisation, more than 170 countries in the world have a minimum wage, or 92 per cent of its 186 member states.
If the progressive wage system is better, why do other countries not adopt it?
The progressive wage system was introduced in Singapore in 2012. It covers the cleaning, security and landscaping industries.
While it has made some progress, it does not help much to raise the overall level of wages and the inequality in wages.
My view is that it will take a long time for the progressive wage system to have an impact. We have a habit of finding convoluted approaches to solve our problems. Many people are confused with these approaches.
What's the problem with implementing a minimum wage. There is a fear that it can cause small employers to reduce the workers that they employ.
Why not, for a start, implement a minimum wage in the public sector and for large companies? We can exclude small businesses initially.
The public sector should set an example and pay an adequate wage to all its workers. It is egregious for the National Library Board to pay a wage of $5.50 an hour for its part time workers.
The same observation can be made about the wages for workers in Changi Airport. If the work is outsourced to sub-contractors by the public sector or the large companies, the minimum wage should also apply to the contracted workers.
It is better for the public sector to stop the practice of outsourcing of their work to reduce the cost of labor.
We can find a way to get small businesses to implement the minimum wage. The govt can give the a subsidy to cover the wages of a limited number of workers in each small business.
The proponents of the progressive wage system pointed out that the wages will be higher for workers with more skills.
We can leave it to the employer to pay higher wages to better skilled workers. There is no need to give this excuse to avoid the minimum wage.
The high inequality in Singapore has to be dealt with. We have to implement a more effective system to raise the wages of low income workers. Most countries decided that the minimum wage system is the way to go. They are not stupid.
Tan Kin Lian
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